At September 30, 2012, PBI Bank’s Tier 1 leverage ratio was 5.53% and its Total risk-based capital ratio was 9.85%, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order with its primary regulators. At September 30, 2012, Porter Bancorp’s Tier 1 leverage ratio was 5.00%, compared with 7.56% at June 30, 2012, and 6.53% at December 31, 2011, and its Total risk-based capital ratio was 10.01% compared with 11.94% at June 30, 2012, and 11.22% at December 31, 2011.
Management and the Board of Directors are evaluating appropriate strategies for increasing the company’s capital in order to meet the capital requirements of our Consent Order. A key component of that evaluation is reviewing the opportunity to sell common stock through either a public offering or private placement to new and existing shareholders. At Porter Bancorp’s 2012 annual shareholders’ meeting, shareholders approved an increase in our common shares authorized for issuance from 19 million shares to 86 million shares.
Forward-Looking StatementsStatements in this press release relating to Porter Bancorp’s plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “plan,” “strive” or similar words, or negatives of these words, identify forward-looking statements. These forward-looking statements are based on management’s current expectations. Porter Bancorp’s actual results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed under “Risk Factors” in the Company’s Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date of the release and Porter Bancorp does not assume any responsibility to update these statements.